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Barrick's (GOLD) Earnings Beat Estimates in Q4, Revenues Lag
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Barrick Gold Corporation (GOLD - Free Report) slipped to a net loss (on a reported basis) of $735 million or 42 cents per share in fourth-quarter 2022, from a profit of $726 million or 41 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 13 cents. The figure beat the Zacks Consensus Estimate of 12 cents.
Barrick recorded sales of $2,774 million, down around 16% year over year. The figure missed the Zacks Consensus Estimate of $3,145.6 million.
The results in the reported quarter were hurt by lower year over year gold production, higher costs and lower gold and copper prices.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Total gold production was 1,120,000 ounces in the reported quarter, down around 7% year over year and up 13% sequentially. Barrick saw strong performance at the Cortez, Carlin and Tongon in the fourth quarter, partly offset by weak production at Pueblo Viejo in the quarter.
Fourth-quarter gold sales were 1,111,000 ounces, down around 10% year over year.
Average realized price of gold was $1,728 per ounce in the quarter, down around 4% year over year.
Cost of sales increased around 23% year over year to $1,324 per ounce.
All-in sustaining costs (AISC) moved up around 28% year over year to $1,242 per ounce in the quarter.
Copper production declined around 24% year over year to 96 million pounds. Average realized copper price was $3.81 per pound, down around 18% year over year.
FY22 Results
Earnings for full-year 2022 were 24 cents per share compared with $1.14 per share a year ago. Net sales fell 8% year over year to $11,013 million.
Financial Position
At the end of 2022, Barrick had cash and cash equivalents of $4,440 million, down around 16% year over year. The company’s long-term debt was $4,769 million at the end of the year, down around 7% year over year.
Operating cash flow was $3,481 million for the year, down around 20% year over year.
The company returned $1.6 billion to shareholders through dividends and share buybacks during 2022.
Barrick’s board has authorized a new program for the repurchase of up to $1 billion of its outstanding shares over the next 12 months. It repurchased shares worth $424 million under its 2022 share repurchase program.
Guidance
For 2023, Barrick anticipates attributable gold production in the range of 4.2-4.6 million ounces, compared with 4.14 million ounces it produced in 2022. It sees stronger year-over-year production performance from Cortez, Pueblo Viejo and Turquoise Ridge.
The company expects AISC in the range of $1,170-$1,250 per ounce, cash costs per ounce in the band of $820-$880 per ounce and cost of sales in the band of $1,170-$1,250 per ounce for 2023.
The company also projects copper production in the range of 420-470 million pounds for 2023, compared with 440 million pounds it produced in 2022. It also sees copper AISC of $2.95-$3.25 per pound and cost of sales of $2.60-$2.90 per pound.
Capital expenditures are projected between $2,200 million and $2,600 million for 2023.
Price Performance
Barrick’s shares have dropped 26.8% in the past year compared with an 11.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 22.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 97% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 55% in a year.
Nucor currently carries a Zacks Rank #1. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.9% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 38% in the past year.
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Barrick's (GOLD) Earnings Beat Estimates in Q4, Revenues Lag
Barrick Gold Corporation (GOLD - Free Report) slipped to a net loss (on a reported basis) of $735 million or 42 cents per share in fourth-quarter 2022, from a profit of $726 million or 41 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 13 cents. The figure beat the Zacks Consensus Estimate of 12 cents.
Barrick recorded sales of $2,774 million, down around 16% year over year. The figure missed the Zacks Consensus Estimate of $3,145.6 million.
The results in the reported quarter were hurt by lower year over year gold production, higher costs and lower gold and copper prices.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Barrick Gold Corporation price-consensus-eps-surprise-chart | Barrick Gold Corporation Quote
Operational Highlights
Total gold production was 1,120,000 ounces in the reported quarter, down around 7% year over year and up 13% sequentially. Barrick saw strong performance at the Cortez, Carlin and Tongon in the fourth quarter, partly offset by weak production at Pueblo Viejo in the quarter.
Fourth-quarter gold sales were 1,111,000 ounces, down around 10% year over year.
Average realized price of gold was $1,728 per ounce in the quarter, down around 4% year over year.
Cost of sales increased around 23% year over year to $1,324 per ounce.
All-in sustaining costs (AISC) moved up around 28% year over year to $1,242 per ounce in the quarter.
Copper production declined around 24% year over year to 96 million pounds. Average realized copper price was $3.81 per pound, down around 18% year over year.
FY22 Results
Earnings for full-year 2022 were 24 cents per share compared with $1.14 per share a year ago. Net sales fell 8% year over year to $11,013 million.
Financial Position
At the end of 2022, Barrick had cash and cash equivalents of $4,440 million, down around 16% year over year. The company’s long-term debt was $4,769 million at the end of the year, down around 7% year over year.
Operating cash flow was $3,481 million for the year, down around 20% year over year.
The company returned $1.6 billion to shareholders through dividends and share buybacks during 2022.
Barrick’s board has authorized a new program for the repurchase of up to $1 billion of its outstanding shares over the next 12 months. It repurchased shares worth $424 million under its 2022 share repurchase program.
Guidance
For 2023, Barrick anticipates attributable gold production in the range of 4.2-4.6 million ounces, compared with 4.14 million ounces it produced in 2022. It sees stronger year-over-year production performance from Cortez, Pueblo Viejo and Turquoise Ridge.
The company expects AISC in the range of $1,170-$1,250 per ounce, cash costs per ounce in the band of $820-$880 per ounce and cost of sales in the band of $1,170-$1,250 per ounce for 2023.
The company also projects copper production in the range of 420-470 million pounds for 2023, compared with 440 million pounds it produced in 2022. It also sees copper AISC of $2.95-$3.25 per pound and cost of sales of $2.60-$2.90 per pound.
Capital expenditures are projected between $2,200 million and $2,600 million for 2023.
Price Performance
Barrick’s shares have dropped 26.8% in the past year compared with an 11.5% decline of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the basic materials space include Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) .
Steel Dynamics currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for STLD's current-year earnings has been revised 22.3% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3%, on average. STLD has rallied around 97% in a year.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10% upward in the past 60 days.
Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 55% in a year.
Nucor currently carries a Zacks Rank #1. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.9% upward in the past 60 days.
Nucor beat Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average. NUE’s shares have gained roughly 38% in the past year.